[Appendix material: calculus required) Suppose total benefits and total costs are given by B(Y)-220Y-15Y2 and C(Y) - 10Y. What level of Ywill yield the maximum net benefits?Multiple Choice10/95 [Appendix material: calculus required] Total benefits in the table areControlvariablee01234578910TotalBenefits Total CostsB(Q)9001,7002,400A3,5003,9004,2004,4004,5004,500C(Q)01003006001,0001,5002,1002,800B4,5005,500NetBenefitsN(Q)0800C1,8002,0002,0001,8001,4008000-1,000MarginalBenefitMB (Q)900800700600500D3002001000toMarginalCostMC (Q)100200E4005006007008009001,000Marginal NetBenefitMNB (Q)F800600400200200-400-600-800-1,000

Net benefit refers to the overall benefit achieved by a firm after subtracting all potential costs…

Answered: [Appendix material: calculus required)…

[Appendix material: calculus required) Suppose total benefits and total costs are given by BMY)-220Y-15Y2 and CY) - 10Y. What level of Y will yield the maximum net benefits? Multiple Choice 10.9 4

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 22RQ: What are diminishing marginal returns as they relate to costs?

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Question

[Appendix material: calculus required) Suppose total benefits and total costs are given by B(Y)-220Y-15Y2 and C(Y) - 10Y. What level of Y
will yield the maximum net benefits?
Multiple Choice
10/9
5

[Appendix material: calculus required] Total benefits in the table are
Control
variable
e
0
1
2
3
4
5
7
8
9
10
Total
Benefits Total Costs
B(Q)
900
1,700
2,400
A
3,500
3,900
4,200
4,400
4,500
4,500
C(Q)
0
100
300
600
1,000
1,500
2,100
2,800
B
4,500
5,500
Net
Benefits
N(Q)
0
800
C
1,800
2,000
2,000
1,800
1,400
800
0
-1,000
Marginal
Benefit
MB (Q)
900
800
700
600
500
D
300
200
100
0
to
Marginal
Cost
MC (Q)
100
200
E
400
500
600
700
800
900
1,000
Marginal Net
Benefit
MNB (Q)
F
800
600
400
200
200
-400
-600
-800
-1,000

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